Europe’s leading asset manager Amundi has turned bullish on Chinese stocks, saying they are set to outperform given the potential developments around COVID ahead.
Amundi, which manages $2 trillion in assets worldwide, is watching for China to roll out a self-developed vaccine, the firm’s CIO Vincent Mortier told Bloomberg. He added it’s also waiting to see whether the government moves to reopen from COVID-19 containment restrictions at the Party Congress in the second half of 2022.
Those developments would be important catalyst’s for China’s stocks, Mortier said, per Bloomberg’s report Monday.
“It’s more a question of when will it happen, not if it will happen,” Mortier said. “To be underweight Chinese equities today is risky. It’s better to be overweight because medium-term, we think there is value.”
Beijing’s zero-COVID policy has hit its economy hard, after the government in March imposed harsh restrictions to contain a surge in infections.